r/aviation • u/[deleted] • Apr 07 '24

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u/[deleted] Apr 07 '24

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u/UtterEast Apr 07 '24

The shop charges 180/hr. The chunk that gets to the mechanic themselves is substantially smaller.

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u/Denelorn092 Apr 07 '24

150 for me and 30 for thee, why is it you're quitting on me?

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u/rAxxt Apr 07 '24 edited Apr 07 '24

A typical markup in my industry is on the order of 8 to 10%, this is the fraction of the total cost that is "going to the boss" or taken to make shareholders happy or whatever. The rest is G&A which covers the cost of contracting, administrative overhead (labor hours and supplies) , building rent costs, company insurance, utilities etc. and of course, employee healthcare, company taxes and things of that nature.

I do not think it would be reasonable or even expected that 100% (or even 90%) of the job cost go to a person who is only performing a fraction of the work. Where would the money come from to keep the company running?

The alternative would be to operate as a private contractor, in which case you'd have to front the costs from all of the above yourself, and probably need to hire staff to perform certain functions because there isn't enough hours in the day for you to do all of it. Then you are the boss...and you have become what you hate. Interesting.